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| Author: | Cahuc, P. Malherbet, F. |
| Title: | Unemployment compensation finance and labor market rigidity |
| Journal: | Journal of Public Economics
2004 : MAR, VOL. 88:3-4, p. 481-501 |
| Index terms: | Unemployment Labour markets Compensation |
| Language: | eng |
| Abstract: | The systematic use of experience rating is an original feature of the U.S. unemployment benefits system. The authors provide a simple matching model of a rigid labour market that includes firing costs, temporary jobs and a minimum wage in order to analyze this issue. The analysis leads them to argue that experience rating is likely to reduce unemployment and improve the welfare of low-skilled workers in France, and more generally for low-skilled workers in a typical, rigid Continental European labour market. |
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